Where will we be in 12 months time?, page-17

The actual profit margins won’t be know until we have more information on the distribution system and final pricing structure but one needs to factor in admin, manufacturing, distribution, depreciation and sales staffing costs all which will come out of the gross margins for the manufacturer.

However, in the US everyone takes a cut so then there are the wholesaler margins (negotiate with the manufacturer), the pharmacy benefit manager margin (they set pharmacy prices), pharmacy margin and insurance margins (negotiated with the manufacturer when discussing the price for insurance purposes). In the US after the manufacturer the insurance company makes tje next biggest margins ~20% (industry average).

There is no point looking at Japan which has a different and much more cost controlled system aimed at ensuring drugs are available and affordable as opposed to the US where the principal aim is profitable.